SDHDA HOME/Housing Tax Credit Application Form. December 2009

SDHDA HOME/Housing Tax Credit Application Form December 2009 P.O. Box 1237 Pierre, SD 57501-1237 (605) 773-3181/TTY (605) 773-6107 FAX (605) 773-5154 www.sdhda.org

SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY 2010 HOME AND HOUSING TAX CREDIT APPLICATION TABLE OF CONTENTS Page I. General Project Information 1 II. Applicant and Owner Information 2 III. Development Team 4 IV. Nonprofit Involvement 5 V. Project Characteristics 6 VI. Tenant Utility Information 7 VII. Unit Distribution and Rents 8 VIII. Project Expenses 9 IX. Site Information 11 X. Acquisition/Rehabilitation 12 XI. Project Financing 14 XII. Subsidies 16 XIII. Project Costs and Uses 17 XIV. Determination of Tax Credit Amount 21 XV. Determining Qualified Basis on a Building by Building Basis 22 XVI. Housing Tax Credit Syndication 22 XVII. Project Timetable 24 XVIII. Notification of Local Official 25 XIX. Application Fee 25 XX. Applicant Certification 26 EXHIBITS A. Development Team Experience B. Authorization For Release Of Information C. Project Rehabilitation Checklist D. Historical Requirements Alternative formats of this document are available to persons with disabilities upon request. For information regarding Section 504 Accessibility, contact the South Dakota Housing Development Authority 504 Coordinator, Steve Hughes, at 1-800-540-4241. i

SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY (SDHDA) 2010 HOME AND HOUSING TAX CREDIT APPLICATION This application was created to be utilized with the HOME Program Allocation and/or the Housing Tax Credit Program Qualified Allocation (QAP) Plans. Unless otherwise specified, the applicant must complete ALL applicable parts of the application form FULLY and include ALL documents and supplementary materials required. All references made and the term CFR shall be deemed to mean, 24 Code of Federal Regulations, Subtitle A, Part 92. All code Section references are to, and the term IRC shall be deemed to mean, the Internal Revenue Code of 1986, as amended. A. Project Name: Site Address(es): I. GENERAL PROJECT INFORMATION City: County: Zip Code: Application Date: B. Amount of HOME Funds Requested $ Requesting from CHDO Set-aside? Yes No CHDO Capacity: Owner Developer Sponsor Type of HOME Application (check all that apply) RENTAL PROGRAM: HOMEOWNERSHIP PROGRAM: New Construction New Construction Rehabilitation Only Acquisition/Rehabilitation Acquisition/Rehabilitation Lease/Purchase Refinancing with Rehabilitation Site Development Acquisition/Conversion (Reconstruction and/or New Construction) Note: Separate applications for the following programs: Homeowner Rehabilitation, Govenor s House Pilot, American Dream Downpayment Initiative, and Security Deposit Assistance. C. The following questions relate to Housing Tax Credit projects only: Annual Housing Tax Credit Requested $ (From Part XIV) Requesting from Non-Profit Set-aside? Yes No Project Type: Rental Tenant Ownership Type of Credit Requested (check all that apply) New Construction without Federal Subsidies New Construction with Federal Subsidies Rehabilitation without Federal Subsidies Rehabilitation with Federal Subsidies Rehabilitation without Federal Subsidies and Acquisition with units occupied or suitable for occupancy on acquisition date. Rehabilitation with Federal Subsidies and Acquisition with units occupied or suitable for occupancy on acquisition date. Rehabilitation without Federal Subsidies and Acquisition with units suitable for occupancy upon completion of the rehabilitation. Rehabilitation with Federal Subsidies and Acquisition with units suitable for occupancy upon completion of the rehabilitation. Acquisition with 10-year rule waiver from Federal Agency D. Is this a USDA Rural Development (FmHA) project? Yes No December 2009 Page 1 of 27

E. The following questions 1-5 relate to Housing Tax Credit projects only: 1. Are HOME or USDA funding sources to be treated as "Federal Funds"? Yes No 2. Minimum Low-income Threshold for Credit eligibility (check one) 20% of the units serving households at 50% of the area median 40% of the units serving households at 60% of the area median Please note that all units financed with tax credits must be at or lower than the above income threshold. 3. Low-income Compliance Period NOTE: Each recipient of an allocation of credits must record an extended use agreement as required by the IRC governing the use of the development for low-income housing for at least 30 years. However, the IRC provides that, in certain circumstances, such extended use period may be terminated early. To receive 80 points, this project will be subject to an extended use agreement in which the owner agrees to extend the affordability period for an additional * years beyond the required 30-year period. (*minimum of 10 years) 4. Total Low-income Targeting This project will set aside a minimum of 20% of the total tax credit units for households not exceeding 50% of area median income and therefore is eligible for 40 points. This project will set aside a minimum of 10% of the total tax credit units for households not exceeding 40% of area median income and therefore is eligible for 40 points. (In order to receive 80 points, the applicant must have a total of 30% of the units set aside.) 5. Regular Allocation (check one) All of the buildings (or) Some of the buildings in the project are expected to be placed in service this year. For these buildings the owner will, this year, request an allocation of tax credits for: New Construction Rehabilitation Acquisition and rehabilitation Carryover Allocation (check one) All of the buildings (or) Some of the buildings in the project are expected to be placed in service within two years after the end of this calendar year, but the owner will have more than 10% basis in the project before the end of this year or within 6 months of reservation of tax credits. For these buildings, the owner will, this year, request a carryforward allocation of tax credits pursuant to Section 42(h)(1)(E) for: New Construction Rehabilitation Acquisition and rehabilitation A building acquired this year and placed it in service for the purpose of acquisition credit cannot receive the 8609 form until the rehab 8609 is issued for that building which will be completed, once the rehab work is placed in service. II. APPLICANT AND OWNER INFORMATION The Owner must be either a legal entity (e.g. partnership, corporation etc.) or an individual who will be named on IRS Form 8609 for tax credit purposes or for whom the HOME funds will be committed. If the Owner is not known yet or to be formed, the applicant must be the Project Developer or Sponsor and the Ownership entity must be formed within the allotted time frame (120 days). (If the Owner is already in existence, it may also be the Applicant). A. Applicant is the current Owner and will retain ownership. Applicant is the proposed Ownership entity or Managing entity (i.e. General Partner). Applicant is the Project Developer and will be part of the final ownership entity. Applicant is the Project Developer or Sponsor and will not be part of the final ownership entity. December 2009 Page 2 of 27

Applicant: Applicant Federal Taxpayer ID No. Date Obtained: Mailing Address: City: State: Zip Code: Contact Person: Phone No. Fax No. E-Mail Address: B. Nonprofit Status of Applicant 501(c)(3) 501(c)(4) 501(a) Exemption C. Capacity of Applicant Owner Developer Sponsor General Partner Other (specify) D. If the Applicant is the Project Developer or Sponsor, who will not retain ownership, briefly describe the planned process and timing for disposition of this project. E. Contact Person During Application Process: Name / Company: Mailing Address: City: State: Zip Code: Contact Person: Phone No. Fax No. E-Mail Address: F. Owner: Owner Federal Taxpayer ID No. Date Obtained: Mailing Address: City: State: Zip Code: Contact Person: Phone No. Fax No. E-Mail Address: G. Type of Owner General Partnership* Limited Partnership* Limited Liability Co* Corporation* Individual Non-Profit Corporation** Local Government Housing Authority Other (specify) * Required materials: Articles of incorporation, by-laws, partnership agreement and other relevant information regarding legal status ** Required materials: See Section IV. December 2009 Page 3 of 27

H. Applicant principal(s) involved (e.g., general partners, controlling shareholders, etc.) Name(s) Phone Type of Ownership % Ownership Principals Resume Attached? YES NO Principals Financials Attached? YES NO I. Legal Status of Owner J. Non-profit Status of Owner Incorporated Registered Chartered 501(c)(3) 501(c)(4) 501(a) Exemption K. Have you or other principals previously received HOME and/or tax credits in South Dakota, if yes please list the project below, please attach additional sheets if necessary. No Yes Project List of Principal(s) Year and Type of Funding Name and Location Ownership Entity Received In other states? No Yes (Complete Exhibit B) If yes, which states and allocation years III. DEVELOPMENT TEAM A. Detailed information (address, phone, contact person, qualifications) for each of the development team is to be included in Exhibit A. Name of General Partner: Name of Developer: Name of Contractor: Name of Management Company: Name of Sponsoring Organization: Name of Consultant: Name of Certified Public Accountant: Name of Tax Attorney: Name of Architect: B. Identity of Interest among Development Team and/or Ownership Entity Do any members of the development team or ownership entity have any direct or indirect, financial or other interest with any of the other project team members (including owners interest in the construction company or subcontractors used)? No Yes If yes, provide a description of the relationship. December 2009 Page 4 of 27

IV. NONPROFIT INVOLVEMENT MUST COMPLETE IN ORDER TO COMPETE FOR FUNDS FROM THE COMMUNITY HOUSING DEVELOPMENT ORGANIZATION (CHDO) SET-ASIDE FOR HOME FUNDS AND/OR THE NONPROFIT POOL FOR HOUSING TAX CREDITS. Articles of incorporation and IRS documentation of status must be submitted prior to allocation request (or at such earlier date as SDHDA may require). To qualify for the CHDO pool or the nonprofit pool, an organization described in IRC Section 501(A) and exempt from taxation under IRC Section 501(c) (3) or (4), whose purposes include the fostering of low-income housing: 1. Must materially participate in the development and operation of the project throughout the compliance period; 2. Must not be affiliated or controlled by a for-profit organization; and 3. Refer to Exhibit 5 of the HOME Program Allocation Plan for additional CHDO requirements. This will require a case-by-case assessment of each CHDO and its involvement in the proposed project. To qualify for the CHDO Set-Aside, the CHDOs involvement shall satisfy all of the requirements specified above. In addition, for Housing Tax Credits the nonprofit must: 1. Must own at least 10% of all general partnership interests in the project (a 10% interest in both the income and profit allocated to all the general partners and in all items of cashflow distributed to general partners) and receive at least 10% of all fees paid or to be paid to general partners; 2. Must not have been formed for the principle purpose of competition in the nonprofit pool. This will require a case-by-case assessment of each nonprofit and its involvement in the proposed. A. Nonprofit Involvement IF THERE IS NO NONPROFIT INVOLVEMENT IN THIS PROJECT, PLEASE INDICATE BY CHECKING HERE AND GO TO PART V. B. IF THERE IS NONPROFIT INVOLVEMENT, YOU MUST COMPLETE THE NONPROFIT QUESTIONNAIRE. C. Identity of Nonprofit The nonprofit organization involved in this project is: the Owner the Applicant (if different from Owner) Other D. Contact Person: Mailing Address: City: State: Zip Code: Phone No. E-Mail Address: CHDO Federal Taxpayer ID Number: Fax No. (HOME applicants only) December 2009 Page 5 of 27

V. PROJECT CHARACTERISTICS A. Qualification as Affordable Housing and Income Targeting NOTE: In order to qualify for HOME funds and/or Housing Tax Credits, a rental project must meet the minimum qualifications as affordable housing (rents) and maintain the required income targeting (income). Please refer to the corresponding allocation plans for the rent and income requirements. B. Extended Use Restriction NOTE: Each recipient will be required to agree in writing to extended use prior to the commitment of HOME funds. A Declaration of Land Use and Restrictive Covenants, incorporating the extended use requirement will be executed and recorded at loan closing. This rental project will be subject to extended use in which the owner's right to termination of the affordability requirements 24 CFR 92.252(e) is waived for additional years after the mandatory compliance period. C. Total Size of Site / Land (Exact area of site in square feet) (Exact area of site in acreage) 1. Total number of units in the project. 2. Number of low-income units in the project. Number of units designated for HOME 0 Bdr 1 Bdr 2 Bdr 3 Bdr 4 Bdr Number of units designated for Housing Tax Credit 0 Bdr 1 Bdr 2 Bdr 3 Bdr 4 Bdr Number of units designated for Project-Based Rental Assistance (Provide copy of Contract) 0 Bdr 1 Bdr 2 Bdr 3 Bdr 4 Bdr Project-Based Rental Assistance Source: 3. Percentage of units designated as low-income. 4. Total number of buildings in the project. 5. Total square footage of buildings in the project (including common areas). 6. Total square footage of buildings designated for low-income tenants in the project. 7. Total square footage of residential living area (excluding common areas). 8. Percentage of floor space designated for low-income units. 9. No. of Section 504 accesssible units for the mobility impaired and sensory impaired 10. No. of adaptive reuse low-income units.* 11. No. of uninhabitable low-income units.* 12. No. of other rehab low-income units. 13. No. of employee-occupied or owner-occupied units. 14. No. of Parking Spaces (Including Garages); No. of Garages *Explanation of previous use is attached. D. Project Type Multifamily Housing Housing for Older Persons (55 or Older) Housing for Older Persons (62 or Older) Transitional Housing Single Family Congregate Care Facility Assisted Living Facility December 2009 Page 6 of 27

E. Type of Units Apartments Townhomes Semi-Detached Detached SRO Manufactured Other F. Number of Floors in the Tallest Building Elevator Construction? Yes No G. Targeting of Units (Indicate type and % of units) Families with Children Housing for Older Persons Homeless Frail Elderly (Assisted Living or Congregate Facility) Persons with physical disabilities Persons with mental disabilities Persons with developmental disabilities H. Will support services be provided to the tenants? Yes No If Yes, are they included in the rent? Yes No Provide a description of the service(s) or special accommodations and letter of intent from service agencies, if applicable. Letter must be submitted to receive points. I. Project Amenities (provide in narrative description) Low-Income Unit Amenities: Common Building(s) and Garages: On-Site Amenities (including recreational amenities): Are market rate units amenities substantially equivalent to those of the low-income units? If no, explain differences? Yes No J. As applicable, check the following community services in close proximity to the project. Close proximity defined as within 6 city blocks, unless there is a public transportation system available to tenants within one block of the project providing access to these services (Provide map marking location of services). Grocery/Retail Hospital/Medical Clinics Schools/Senior Center (as applicable) Special Service Offices VI. TENANT PAID UTILITY ALLOWANCE INFORMATION A. Indicate which of the following type (electric, gas, etc.) and costs (if any) paid by the Tenant (T) or Owner (O) and fill in bedroom size: Bedroom Bedroom Bedroom Type Paid By Heating Air Conditioning Cooking Lighting Hot Water Water/Sewer Trash Other Total Cost Source of Utility Allowance: Effective Date: This source is a: PHA Utility Company HUD USDA December 2009 Page 7 of 27

VII. UNIT DISTRIBUTION AND RENTS For a low-income unit, the combination of tenant-paid monthly rent and utilities or utility allowance may not exceed the maximum allowable rents under the federal tax credit statute and/or the HOME Investment Partnerships Program. List employee unit(s) separately and show manager in the rent column. Restricted Units: Designate as HTC (TC) or HOME (H) in the Tenant % of Area Median Income (AMI) Column (ie TC 50%/FMR, TC 60%, etc.). NOTE: For HTC Projects the Maximum rents for 40% of the HTC units must be the lesser of Fair Market Rent (FMR), the actual market rent for the area, the HTC rent or a percentage of the HTC rent. Bdrm. Size No. of Units (A) Sq. Ft. Per Unit (B) Total Sq. Ft. Per Unit = (A)*(B) Gross Monthly Rent Per Unit (C) Tenant Paid Utility (D) Net Monthly Rent Per Unit (E) = (C)-(D) Total Net Monthly Rent = (A)*(E) Tenant % of AMI AND Note if FMR (ie TC-50%/FMR) Totals XXXXXXX XXXXXX XXXXXX XXXXXXX XXXXXXXXXX Employee Units Bdrm. Size No. of Units (A) Sq. Ft. Per Unit (B) Total Sq. Ft. Per Unit = (A)*(B) Gross Monthly Rent Per Unit (C) Tenant Paid Utility (D) Net Monthly Rent Per Unit (E) = (C)-(D) Total Net Monthly Rent = (A)*(E) Totals XXXXXXX XXXXXX XXXXXX XXXXXXX Non-Restricted Units (Market Units) Bdrm. Size No. of Units (A) Sq. Ft. Per Unit (B) Total Sq. Ft. Per Unit = (A)*(B) Gross Monthly Rent Per Unit (C) Tenant Paid Utility (D) Net Monthly Rent Per Unit (E) = (C)-(D) Total Net Monthly Rent = (A)*(E) Totals XXXXXXX XXXXXX XXXXXX XXXXXXX A. PROJECT INCOME TOTAL NET MONTHLY TENANT PAID RENT FOR ALL UNITS $ December 2009 Page 8 of 27

Miscellaneous MONTHLY Income Related to Residential Use (specify) TOTAL MISCELLANEOUS MONTHLY INCOME $ $ $ $ TOTAL ANNUAL MISCELLANEOUS RESIDENTIAL INCOME $ (Page 9 Total *12) TOTAL ANNUAL NET TENANT PAID RENT FOR ALL UNITS $ (Page 8 Total *12) TOTAL ANNUAL RESIDENTIAL INCOME $ (NET TENANT PAID RENT + MISCELLANEOUS) TOTAL ANNUAL COMMERCIAL INCOME $ TOTAL PROJECT INCOME FROM ALL SOURCES $ Vacancy Allowance (maximum of 7%) $ Number of Parking Spaces in Project (Including Garages): Number of Garages in Project: VIII. PROJECT EXPENSES A. Annual Operating Expenses (Estimated as of the end of the first full year of operation); with copies of supporting documentation provided. All residential expenses must be broken out by line item. Category totals only will not be accepted. ADMINISTRATIVE EXPENSES Advertising $ Accounting/Audit Legal/Partnership Management Fee Management Salaries/Taxes Office Supplies/Telephone Other (specify) TOTAL ADMINISTRATION EXPENSES $ MAINTENANCE EXPENSES Painting/Decorating/Cleaning $ Elevator Exterminating Grounds (Inc. Snow Removal) Maintenance Salaries/Taxes Maintenance Supplies Repairs Other (specify) TOTAL MAINTENANCE EXPENSES $ December 2009 Page 9 of 27

OPERATING EXPENSES Fuel Oil $ Electrical Natural Gas or Propane Water & Sewer Trash Removal Other (specify) Other (specify) TOTAL OPERATING EXPENSES $ FIXED EXPENSES Real Estate Taxes $ In Lieu of Taxes Insurance Other Taxes, Fees, Licenses Other (specify) TOTAL FIXED EXPENSES $ TOTAL ANNUAL RESIDENTIAL OPERATING EXPENSE $ ANNUAL OPERATING EXPENSE PER UNIT $ ANNUAL REPLACEMENT RESERVES PER UNIT $ NUMBER OF UNITS: $ TOTAL ANNUAL COMMERCIAL OPERATING EXPENSES $ B. Projections for Financial Feasibility and Long-Term Viability Provide a projection of cash flow using the income stated in Section VII and expense figures stated in Section VIII A. for the entire affordability period. This Pro forma will be calculated using the following prescribed method: Potential Gross Income less Vacancy Loss equals Effective Gross Income, less Operating Expenses equals Net Operating Income, less Debt Service equals Cash Flow. Project the cash flow annually from the date credit will be used or placed in service. Annual vacancy rate at 7%. Trend annual increase in income at 2% Trend annual increase in expenses at 3%. For replacement reserves a minimum of $350 per unit (including managers unit(s)), per year and trended at 3% annually. PROVIDE SAME CASH FLOW INFORMATION SEPARATELY FOR ANY COMMERCIAL SPACE December 2009 Page 10 of 27

IX. SITE INFORMATION A. Applicant controls site by (select one and attach document - MANDATORY):* Deed - attached Option - attached (expiration date ) Purchase Contract - attached Long term Lease - attached (expiration date ) (expiration date ) B. Owner is to acquire property by deed (or lease for a period no shorter than period property will be subject to occupancy restrictions) no later than *(must be this year). C. *If more than one site for the project and more than one expected date of acquisition by Owner, please so indicate and attach separate sheet specifying each site, number of existing buildings on the site, if any, and type of control of each site. D. Name of seller (if applicable): Address: City: State: Zip: E. Is the property located and administered within the city limits? Yes No F. Is site properly zoned? Yes No If yes, include evidence of proper zoning. If no, is site currently in the zoning process? Yes No Provide details: When is zoning issue scheduled to be resolved (month and year)? G. Is this project located in a Qualified Census Tract or Difficult Development Area? Yes No If yes, Census Tract Number: (Refer to Exhibit 1 of QAP) H. Is the project located in a Metropolitan Statistical Area? Sioux City (Union County) or Sioux Falls (Lincoln, McCook, Minnehaha, Turner Counties) Yes No I. Are all utilities presently available to the site? Yes No If yes, include evidence of utility availability. If no, provide explanation, including dates, when all utilities will be available. J. Has locality approved site plan? Yes No Include site plan approved by locality K. Has locality issued building permit? Yes No Include building permit or documentation of status of approval. L. Attached are the Plan and Specifications: % complete. M. Are there any environmental issues related to the property? Yes No If yes, describe: December 2009 Page 11 of 27

N. Legal description of the property that identifies it as the site in the site control document: O. Provide a location map, showing location of the site relative to the surrounding area. Immediately adjacent land uses: 1. North: 2. South: 3. East: 4. West: X. ACQUISITION/REHABILITATION INFORMATION A. Acquisition Are HOME Funds and/or Housing Tax Credits being requested for acquisition of existing buildings? Yes No If no, go on to Rehabilitation. 1. Buildings acquired or to be acquired from: related party unrelated party FHA USDA Rural Development 2. The buildings were last placed in service on this date: Are the buildings currently vacant? Yes No (If the answer is No and HOME funds are requested, you must submit the previous four months rent rolls and may have to submit a tenant questionnaire for each tenant (Exhibit 6 of the HOME Program Allocation Plan) The buildings were last occupied when? The buildings were built in what year? The date the buildings will be acquired? Addresses for the buildings being acquired: 3. Existing Debt: Will the existing debt be: Prepaid Assumed (Assumed Debt Maturity Date) Estimated amount of funds to be prepaid or assumed: $ Estimated date the debt will be prepaid or assumed: 4. Project-Based Rental Assistance: Will the existing Project-Based Rental Assistance be continued? Yes No Source of Project-Based Rental Assistance: Complete the following table and provide a copy of the latest approved rental assistance contract Effective Date No. Of Units Bedroom Size Contract Rents Utility Allowance Gross Rents December 2009 Page 12 of 27

5. For Housing Tax Credits please answer the following: Do all buildings satisfy the 10-year look-back rule of IRC Section 42(d)(2)(B)? Yes No If No, the 10-year look-back rule does not apply because: 42 (d)(6)(a): the 10-year rule does not apply to federal or state assisted buildings. 42 (d)(6)(b): a waiver has been requested because the building is being acquired from insured depository institutions in default. Different circumstances for different buildings: Attach a separate sheet and explain for each building. If applicable, applicant must submit evidence of approved waiver of ten-year rule by a letter ruling from the IRS. Attorney s opinion must be submitted if building(s) is to be included in eligible basis B. Rehabilitation If no HOME Funds or Housing Tax Credits are being requested for existing buildings being rehabilitated, is the property in good to excellent condition? Yes No Has any maintenance been deferred? Yes No Go on to Part XI. If HOME or Housing Tax Credits are requested, please continue. 1. Historic Properties a. Is this building in a historic district or designated a historic building? Yes No b. Year built: c. Please attach: 1. Photographs of the building. The photos should show all four exterior sides of the building and the inside of a typical unit. 2. Description of what type of exterior rehabilitation is necessary. 3. Description, by apartment unit, of what type of rehabilitation is necessary for the interior. 4. Description of condition and age of major building systems (ie: roof, heating, cooling, plumbing, electrical). 2. Minimum Expenditure Requirements (Housing Tax Credit projects only) All buildings in the project satisfy the 20% basis requirement of IRC Section 42(e)(3)(A)(i). All buildings in the project qualify for the IRC Section 42(e)(3)(B) exception to the 20% basis requirement (4% credit only). All buildings in the project satisfy the $6,000 rehabilitation cost per unit requirement of IRC Section 42(e)(3)(A)(ii) and the $10,000 rehabilitation cost per unit requirement of SDHDA. All buildings in the project qualify for the IRC Section 42(f)(5)(B)(ii)(II) exception to the $6,000 rehabilitation cost per unit requirement ($4,000 rehabilitation cost per unit required instead; 4% credit only). Different circumstances for different buildings; see above, attach a separate sheet and explain for each building. December 2009 Page 13 of 27

A. Construction Financing XI. PROJECT FINANCING (SOURCES OF FUNDS) List all preliminary and enforceable financing commitments, including grants (tax credit syndication information to be listed in Section XVI) and provide copies of same. If the applicant plans to finance part or all of the project out of its own resources, the applicant must prove to SDHDA s satisfaction that such resources are available and committed solely for this purpose. If a mortgage broker is involved in arranging financing from another source, so indicate. Any owner equity contributions or deferred fees should also be listed below if the funds will provide a source of financing. Indicate with an asterisk (*) enforceable financing commitments. No. Name of Lender or Other Source Amount of Funds Interest Rate 1. $ % 2. % 3. % 4. % 5. % Total Residential Construction Funds $ (Please include commercial space on a separate sheet.) Term Commitment Date Make copies of this page and complete the following for each Residential Construction Lender or source of funds. 1. Name of Lender/Source Address City State Zip Code Phone Source: Tax Exempt Bond Conventional HOME Private Owner Equity Federal Local Gov't Other (Specify) Type: Amortizing Loan Grant Deferred Loan Forgivable Loan Credit Enhancement Balloon Owner Equity BMIR***Loan Other (Specify) 2. Name of Lender/Source Address City State Zip Code Phone Source: Tax Exempt Bond Conventional HOME Private Owner Equity Federal Local Gov't Other (Specify) Type: Amortizing Loan Grant Deferred Loan Forgivable Loan Credit Enhancement Balloon Owner Equity BMIR***Loan Other (Specify) *** Below Market Interest Rate December 2009 Page 14 of 27

B. Permanent Financing List all preliminary and enforceable financing commitments, including grants (tax credit syndication information to be listed in Section XVI) and provide copies of same. If the applicant plans to finance part or all of the project out of its own resources, the applicant must prove to SDHDA s satisfaction that such resources are available and committed solely for this purpose. Any owner equity contributions or deferred fees should also be listed below if the funds will provide a source of financing. If a mortgage broker is involved in arranging financing, so indicate. Indicate with an asterisk (*) enforceable financing commitments. No. Name of Lender or Other Source Amount of Funds Interest Rate Term/ Amort Annual Debt Service 1. $ % $ 2. % 3. % 4. % 5. % Subtotal Permanent Financing $ $ Gross Proceeds Historic Tax Credit $ Gross Proceeds Low-Income Tax $ Credits Total Permanent Financing Sources $ (Please include commercial space on a separate sheet.) Commitment Date Make copies of this page and complete the following for each Lender or source of funds. 1. Name of Lender/Source Address City State Zip Code Phone Source: Tax Exempt Bond Conventional HOME Private Owner Equity Federal Local Gov't Other (Specify) Type: Amortizing Loan Grant Deferred Loan Forgivable Loan Credit Enhancement Balloon Owner Equity BMIR***Loan Other (Specify) 2. Name of Lender/Source Address City State Zip Code Phone Source: Tax Exempt Bond Conventional HOME Private Owner Equity Federal Local Gov't Other (Specify) Type: Amortizing Loan Grant Deferred Loan Forgivable Loan Credit Enhancement Balloon Owner Equity BMIR***Loan Other (Specify) *** Below Market Interest Rate December 2009 Page 15 of 27

XII. SUBSIDIES A. Loan and Grant Subsidies If none apply, so indicate here: If one or more of the following are to be used, please provide the requested information. Tax-Exempt Bonds USDA Rural Development 515 Section 221 (d)(3) Section 221 (d)(4) USDA Rural Development 504 HOME Investment Partnerships Act (HOME) Other (specify) Included in Eligible Basis For Tax Credits? $ Loan $ Grant Does the use of any of the above categorize this project as "federally subsidized" and, therefore, eligible only for the 30% present value tax credit? YES NO If yes, which ones? B. Is tax-exempt bond financing expected to be used? YES NO Percent such bonds represent of the aggregate basis of the buildings and land of the project: %. This percentage must be 50% or more. A formal allocation of credits from SDHDA is necessary and SDHDA must determine that the project meets the requirements of the State s Allocation Plan. C. What, if any, Credit Enhancements are expected to be used? YES NO FHA Insurance Private Mortgage Insurance Letter(s) of Credit Other (specify) USDA Rural Dev. 538 Guarantee D. Rent Subsidy Anticipated If none apply, so indicate here USDA Rural Development % HUD Vouchers % HUD Tenant-Based Certificates % HUD Project Based (specify) % Other (specify) % Approval Date E. Pre-Existing Subsidies (Rehab and Rehab/Acquisition projects only): Indicate with an "X" any of the following that are currently utilized by the project. HUD Sec 221(d)(3) USDA Rural Development 515 HUD Sec 236 USDA Rural Development 521 (rent subsidy) HUD Sec 236 and Tax Exempts Tax Exempt Bonds HUD Sec 8 New Const/Sub Rehab State/Local HUD Rent Sup/RAP F. Will the mortgage insurance or financing subsidy continue? Yes (specify term) No December 2009 Page 16 of 27

XIII. PROJECT COSTS AND USES List all residential project costs (including non-restricted units). HOME applicants complete the actual cost column only. Housing tax credit applicants carry the cost amount over to the appropriate eligible basis category. If the project involves acquisition and rehabilitation, the applicant will need to breakdown the cost percentage attributed to acquisition versus rehabilitation for costs such as Developer Fees. (Specify what ALL "other" costs are) Itemized Costs Actual Costs 30% PV Eligible Basis (4% Credit) 70% PV Eligible Basis (9% Credit) 130% Adjustment High Costs Area* PURCHASE LAND AND BUILDINGS Land Existing Structures Demolition Other (Specify) 1. SUBTOTAL SITE WORK On Site Improvements Off Site Improvements Roads, Driveways & Walks Landscaping Signage Other (Specify) 2. SUBTOTAL NEW CONSTRUCTION AND REHABILITATION New Buildings Rehabilitation Garages /Accessory Structures Garages/Other (Not in Basis) General Requirements (max 6% hard costs) Contractor Profit (max 6% hard costs) Contractor Overhead (max 2% hard costs) December 2009 Page 17 of 27

Excise Taxes Building Fees & Permits Appliances Other (Specify) 3. SUBTOTAL CONSTRUCTION CONTINGENCY Construction Contingency Other (Specify) 4. SUBTOTAL *Difficult Development Area or Qualified Census Tract (see Exhibit 1 of the Housing Tax Credit Allocation Plan). Itemized Costs PROFESSIONAL FEES Architect Design Architect Supervision Real Estate Attorney Real Estate Agent Engineer / Survey Physical Needs Assessment CPA Cost Certification Other (Specify) Actual Costs 30% PV Eligible Basis (4% Credit) 70% PV Eligible Basis (9% Credit) 130% Adjustment High Costs Area* 5. SUBTOTAL CONSTRUCTION INTERIM COSTS Payment / Performance Bond Construction Insurance Construction Interest Construction Loan Origination Fee Construction Loan Credit Enhancement December 2009 Page 18 of 27

Title and Recording (construction only) Legal Fees Real Estate Taxes Other (Specify) 6. SUBTOTAL *Difficult Development Area or Qualified Census Tract (see Exhibit 1 of the Housing Tax Credit Allocation Plan) Itemized Costs PERMANENT FINANCING Actual Costs 30% PV Eligible Basis (4% Credit) 70% PV Eligible Basis (9% Credit) 130% Adjustment High Costs Area* Bond Premium Credit Report Loan Origination Fees Credit Enhancement Cost of Issuance / Underwriter Discount Title and Recording Legal Fees Other (specify) 7. SUBTOTAL XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX XX SOFT COSTS Property Appraisal Market Study Environmental Reports Tax Credit Fees Rent-up (Marketing) Compliance Fees Soft Cost Contingency Other (Specify) XX XX XX XX XX XX Other (Specify) 8. SUBTOTAL *Difficult Development Area or Qualified Census Tract (see Exhibit 2 of the Housing Tax Credit Allocation Plan) December 2009 Page 19 of 27

Itemized Costs Actual Costs 30% PV Eligible Basis (4% Credit) 70% PV Eligible Basis (9% Credit) 130% Adjustment High Costs Area* SYNDICATION COSTS Organizational (Partnership) Bridge Loan Fees Tax Opinion Other (Specify) 9. SUBTOTAL XX XX XX XX XX XX XX XX XX XX DEVELOPER FEES Developer Fee Developer Overhead Developer Profit Consultant Fee 10. SUBTOTAL PROJECT RESERVES Rent-Up Reserves Operating Reserves Replacement Reserves Debt Service Reserves Other (Specify) 11. SUBTOTAL XX XX XX XX XX XX XX XX XX XX XX XX TOTAL RESIDENTIAL COST TOTALS *Difficult Development Area or Qualified Census Tract (see Exhibit 1 of the Housing Tax Credit Allocation Plan) IF PROJECT CONTAINS COMMERCIAL USE SPACE, PLEASE PROVIDE BREAKDOWN OF COMMERCIAL COSTS ON SEPARATE SHEET. December 2009 Page 20 of 27

XIV. DETERMINATION OF TAX CREDIT AMOUNT HOUSING TAX CREDIT PROJECTS ONLY 9% Rate 4% Rate Eligible Basis Calculation Eligible Basis Calculation Total Project Cost $ $ Less Amounts not Allowed into Basis $ - $ - Less Grants $ - $ - Less Amount of Nonqualified Nonrecourse Financing $ - $ - Less Nonqualifying Units of Higher Quality $ - $ - Less Historic Tax Credit Basis $ - $ - Total Eligible Basis $ $ Multiplied by the Applicable Fraction X % X % Total Qualified Basis $ $ Multiplied by the Applicable Federal Credit Rate X 9% X 4% Maximum Allowable Credit Amount $ $ Gap Calculation (1) Total Project Cost $ (2) Less Total Sources of Funds Including Owner Equity - (3) Equals Equity Gap = (4) Estimated Market Value of Tax Credit (cents) (5) Tax Credits Needed (Line 3 divided by Line 4 divided by 10) $ (6) Maximum Allowable Credit Amount (from above) $ (7) Allowable Reservation Amount (lesser of Line 5 & Line 6) $ Tax Credits Requested by Applicant $ PLEASE NOTE: The actual amount of credit for the project is determined by SDHDA. If the project is eligible for Historic Tax Credit, include an actual cost breakdown of the determination of eligible basis for the Historic Credit with the application. If the Project s basis has been adjusted because it is in a high cost or qualified census tract, the actual deduction for the Historic Cost items must be adjusted by multiplying the amount by 130%. This does not apply to Historic Tax Credits. Based on an evaluation, SDHDA will estimate the amount of credit it will reserve for each Application. This determination is made solely at SDHDA s discretion and is in no way a representation to anyone as to the feasibility of the project. Rather, it will serve as the basis for making a reservation of credits. A similar analysis to determine tax credits necessary will be done at the time of reservation, at the time a carryover allocation is approved, and at the time the project is placed in service, provided all project costs are finalized and certified. December 2009 Page 21 of 27

XV. DETERMINING QUALIFIED BASIS ON A BUILDING BY BUILDNG BASIS HOUSING TAX CREDIT PROJECTS ONLY Address (must be completed) 1. Eligible Basis 9% Rate Applicable Fraction Qualified Basis Eligible Basis 4% Rate Applicable Fraction Qualified Basis Estimated Placed In Service Date 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. TOTALS XXXXXXX XXXXXXX XXXXXX XXXXXX XXXXXXX XXXXXXX XXXXXX XXXXXX XVI. HOUSING TAX CREDIT SYNDICATION Tax Credit Syndication (Provide as much information and documentation as is available at time of application.) A. Does this project qualify for Historic Rehabilitation Credits? Yes No If yes, what is the credit amount? $ Estimated Gross Proceeds: $ B. Will the Tax Credits be offered to investors? Yes No 1. If no, attach a description explaining how the tax benefits will be used and how that will benefit the project. 2. If yes, answer each of the following: Type of offering: Public Private Type of Investor: Individuals Corporations December 2009 Page 22 of 27

C. HTC Syndication costs will be evaluated along with other project costs. Please list all estimated or actual cost of syndication associated with the project. HTC Gross Proceeds $ Less: Attorney $ Accountant $ Consultant(s) $ Broker(s) $ Bridge Loan & Interest $ Syndicator $ Other (specify) $ Total Costs $ Net HTC Proceeds $ Net Proceeds/Gross Proceeds % Number of Annual Pay-In Periods First Pay-in Year D. Syndicators or Equity Sources which have been contacted: 1. Source Name: Address: City: State: Zip Code: Phone No. 2. Source Name: Address: City: State: Zip Code: Phone No. 3. Source Name: Address: City: State: Zip Code: Phone No. Please use an additional sheet of paper if necessary to list all Syndicators. December 2009 Page 23 of 27

XVII. PROJECT TIMETABLE Indicate the actual or expected date by which the following activities will have been completed. In providing this schedule, be sure to take into consideration the requirement that the project must start construction or rehabilitation within 1 year of the date of a carryover allocation or credits will be subject to recapture. Actual or Scheduled Month/Year Activity Site Acquisition Zoning Approval Plat Approval Tax Abatement Environmental Review Completed Construction Financing Loan Application Conditional Commitment Firm Commitment Closing and Disbursement Permanent Financing Loan Application Conditional Commitment Firm Commitment Closing and Disbursement Local Permits Conditional Use Permit Variance Site Plan Review Building Permit Other (specify) Other Loans and Grants Type & Source: Application Closing or Award Equity Syndication Letter of Commitment Partnership Closing December 2009 Page 24 of 27

Other 10% of Project Costs Incurred Tax Credit Carryover Allocation Final Plans/Specs Construction Start Construction Completion Placed in Service Occupancy of all Low-Income Units XVIII. NOTIFICATION OF LOCAL OFFICIAL Provide the name of the local political jurisdiction (town or city, if incorporated, otherwise, county) in which the project will be located and include the name and address of the chief executive officer of the political jurisdiction. Name of Local Governing Body: Name of Chief Executive Officer: Address: City: Phone No. Zip Code: Letter of approval and support from the locality is attached? YES NO (IF NOT ATTACHED, APPLICATION WILL NOT BE ACCEPTED) XIX. APPLICATION FEE HOUSING TAX CREDIT PROJECTS ONLY Application fee due: $ 750.00 Amount of application fee submitted: $ (Make checks payable to South Dakota Housing Development Authority) ADDITIONAL FEE REQUIREMENTS A reservation fee of 3% of the annual credit amount reserved is due upon notification from SDHDA of reservation of tax credits. An allocation fee of 7% of the annual credit allocation amount is due at the time of final allocation. Additional fee requirements may be found in Part IX of the SDHDA Qualified Allocation Plan. December 2009 Page 25 of 27

The undersigned hereby acknowledges the following: XX. APPLICANT CERTIFICATION 1. That this application form provided by SDHDA to applicants for HOME funds and/or tax credits, including all sections herein relative to project costs, credit calculations, and determinations of the amount of HOME funds and/or tax credit necessary to make the project financially feasible, is provided only for the convenience of SDHDA in reviewing reservation requests; that completion hereof in no way guarantees eligibility for the HOME funds and/or tax credits or ensures that the amount of HOME funds and/or tax credits applied for has been computed in accordance with the CFR and/or Code requirements; and that any notations herein describing the CFR and/or Code requirements are offered only as general guides and not as legal authority; 2. that the undersigned is responsible for ensuring that the proposed project will be comprised of qualified low income buildings and that it will in all respects satisfy all applicable requirements of federal tax law and any other requirements imposed upon it by SDHDA at the time of reservation, should one be issued; 3. that, for the purposes of reviewing this application, SDHDA is entitled to rely upon the representations of the undersigned as to the inclusion of costs in eligible basis for the project as a whole and for each building therein individually as well as the amounts and types of credit applicable thereto, but that the issuance of a reservation based on such representations in no way warrants their compliance with the CFR and/or the Code requirements; 4. that SDHDA may request or require changes in the information submitted herewith, and may substitute actual figures for any estimated figures provided therein by the undersigned and may reserve HOME funds and/or tax credits, if any, in an amount different from the amount requested; 5. that reservations are not transferable without prior approval by SDHDA; 6. that the requirements for applying for the HOME funds and/or tax credits and the terms of any reservation or allocation thereof are subject to change at any time by federal or state law, federal, state, or SDHDA regulation, or other binding authority; and 7. that reservations will be subject to certain conditions to be satisfied prior to allocation. Further, the undersigned hereby certifies the following: 1. The Applicant shall not, in the provision of services, or in any other manner, discriminate against any person on the basis of race, color, creed, religion, sex, national origin, age, familial status or handicap; and 2. that, to the best of its knowledge and belief, all factual information provided herein or in connection herewith is true and correct and all estimates are reasonable and can be obtained from any source named herein; and 3. that it will at all times indemnify and hold harmless SDHDA against all losses, costs, damages, expenses, and liabilities of any nature or indirectly resulting from, arising out of or relating to SDHDA s acceptance, consideration, approval, or disapproval of this request and the issuance or nonissuance of HOME funds and/or tax credits in connection herewith; and 4. that, if it proposes to utilize USDA Rural Development financing, it agrees to provide a copy of this application, Pro Forma, CPA Cost Certification, HOME loan documentation and IRS Form 8609 to USDA Rural Development, and further acknowledges that USDA Rural Development and SDHDA will work cooperatively to ensure that RHS assistance, HOME funds and/or tax credits provided is not more than is necessary to provide affordable housing after taking account of assistance from all Federal, State and local sources; and 5. that it provides SDHDA the right to exchange information with other state allocation agencies and with other parties as deemed appropriate by SDHDA. December 2009 Page 26 of 27

IN WITNESS WHEREOF, the undersigned, being duly authorized, has caused this document to be executed in its name on this day of, 20. I declare and affirm under the penalties of perjury that the claim (petition, application, information) has been examined by me, and to the best of my knowledge and belief, is in all things true and correct. Legal Name of Applicant Signature Title December 2009 Page 27 of 27

EXHIBIT A DEVELOPMENT TEAM EXPERIENCE 1. PROJECT NAME: Site Address: City: State: Zip Code: 2. APPLICANT NAME: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): 3. NAME OF GENERAL PARTNER: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): 4. NAME OF DEVELOPER: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): December 2009 Page 1 of 3

5. NAME OF CONTRACTOR: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): 6. NAME OF MANAGEMENT COMPANY: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in managing affordable housing (attach list of names, addresses, and nature of low-income projects): 7. NAME OF CONSULTANT: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): 8. NAME OF SPONSORING ORGANIZATION: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Contact Person: No. of Years experience: Fax No. E-Mail: Describe experience in developing affordable housing (attach list of names, addresses, and nature of low-income projects): December 2009 Page 2 of 3

9. NAME OF CERTIFIED PUBLIC ACCOUNTANT: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Fax No. Contact Person: E-Mail: No. of Years experience: 10. NAME OF TAX ATTORNEY: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Fax No. Contact Person: E-Mail: No. of Years experience: 11. NAME OF ARCHITECT: Entity Type: Federal Tax Identification No. Mailing Address: State: Zip Code: Phone No. Fax No. Contact Person: E-Mail: No. of Years experience: Do any members of the development team have any direct or indirect, financial or other interest with any of the other project team members (including owners interest in the construction company or subcontractors used)? ( ) Yes ( ) No If yes, describe the level of participation and/or relationship of each: Describe any default, disposition of or status of default, foreclosure or findings of non-compliance for any of the projects listed on attachments. Use an additional sheet of paper if necessary. The undersigned, being duly authorized, hereby represents and certifies that the foregoing information, to the best of his/her knowledge, is true, complete and accurately describes the proposed development team. Signature of Legal Applicant Title Date December 2009 Page 3 of 3

EXHIBIT B SOUTH DAKOTA HOUSING DEVELOPMENT AUTHORITY AUTHORIZATION FOR RELEASE OF INFORMATION Applicant: Please copy this form, complete page 1, send the entire form to each state in which you have previously participated in the Low Income Housing Tax Credit (LIHTC) Program and HOME Program and submit a copy of each with your application for LIHTC and HOME funding. Complete this process for any owner, developer, sponsor, or general partner listed in this application that has an ownership interest in a tax conducted business under different names. State Housing Finance Agency/Authority By: Printed Name and Title Street Address City, State, Zip The undersigned hereby authorizes you to complete the attached LIHTC/HOME Program Performance Questionnaire and to release to the South Dakota Housing Development Authority (SDHDA) any information you have regarding our firm as it relates to project development, compliance debarment, the curing of or failure to cure any project noncompliance, and any formal or informal action taken by our agency with respect to our participation as an owner or management agent in your LIHTC or HOME program. Other data that may be relevant to SDHA in its assessment of our development experience and compliance record is also appreciated. Thank you in advance for your cooperation. Company Name By: Signature Printed Name Title Properties developed or managed by this company in the above referenced state (attach additional pages if necessary): Name LIHTC or HOME Project No. City Name LIHTC or HOME Project No. City December 2009 Page 1 of 2